The settlement by Pepsi Beverages Co. will be divided among
black applicants denied jobs at the unit, previously known as
Pepsi Bottling Group, and will cover costs to make the payments.

The U.S. investigation found that Pepsi’s criminal
background-check policy discriminated against blacks in
violation of the Civil Rights Act, according to the statement.
More than 300 blacks were were affected by the policy, the
agency said.

The company, an operating unit of Purchase, New York-based
PepsiCo, didn’t immediately respond to a request for comment on
the settlement.

The EEOC found that Pepsi Beverage’s background checks
denied employment to applicants who had been arrested or
convicted of certain minor offenses, or were awaiting
prosecution without prior convictions.

“The EEOC has long standing guidance and policy statements
on the use of arrest and conviction records in employment,”
EEOC Chair Jacqueline Berrien said in an e-mail statement.

During the investigation, Pepsi adopted a new criminal
background-check policy, the agency said. Pepsi Beverages will
offer job opportunities to applicants denied work under the
policy who still want jobs and are qualified, the agency said.